Laws: Cases and Codes : U.S. Code : Title 12 : Section 4806


   
U.S. Code as of: 01/19/04
Section 4806. Regulatory appeals process, ombudsman, and alternative dispute resolution

    (a) In general
      Not later than 180 days after September 23, 1994, each
    appropriate Federal banking agency and the National Credit Union
    Administration Board shall establish an independent intra-agency
    appellate process. The process shall be available to review
    material supervisory determinations made at insured depository
    institutions or at insured credit unions that the agency
    supervises.
    (b) Review process
      In establishing the independent appellate process under
    subsection (a) of this section, each agency shall ensure that - 
        (1) any appeal of a material supervisory determination by an
      insured depository institution or insured credit union is heard
      and decided expeditiously; and
        (2) appropriate safeguards exist for protecting the appellant
      from retaliation by agency examiners.
    (c) Comment period
      Not later than 90 days after September 23, 1994, each appropriate
    Federal banking agency and the National Credit Union Administration
    Board shall provide public notice and opportunity for comment on
    proposed guidelines for the establishment of an appellate process
    under this section.
    (d) Agency ombudsman
      (1) Establishment required
        Not later than 180 days after September 23, 1994, each Federal
      banking agency and the National Credit Union Administration Board
      shall appoint an ombudsman.
      (2) Duties of ombudsman
        The ombudsman appointed in accordance with paragraph (1) for
      any agency shall - 
          (A) act as a liaison between the agency and any affected
        person with respect to any problem such party may have in
        dealing with the agency resulting from the regulatory
        activities of the agency; and
          (B) assure that safeguards exist to encourage complainants to
        come forward and preserve confidentiality.
    (e) Alternative dispute resolution pilot program
      (1) In general
        Not later than 18 months after September 23, 1994, each Federal
      banking agency and the National Credit Union Administration Board
      shall develop and implement a pilot program for using alternative
      means of dispute resolution of issues in controversy (hereafter
      in this section referred to as the "alternative dispute
      resolution program") that is consistent with the requirements of
      subchapter IV of chapter 5 of title 5 if the parties to the
      dispute, including the agency, agree to such proceeding.
      (2) Standards
        An alternative dispute resolution pilot program developed under
      paragraph (1) shall - 
          (A) be fair to all interested parties to a dispute;
          (B) resolve disputes expeditiously; and
          (C) be less costly than traditional means of dispute
        resolution, including litigation.
      (3) Independent evaluation
        Not later than 18 months after the date on which a pilot
      program is implemented under paragraph (1), the Administrative
      Conference of the United States shall submit to the Congress a
      report containing - 
          (A) an evaluation of that pilot program;
          (B) the extent to which the pilot programs meet the standards
        established under paragraph (2);
          (C) the extent to which parties to disputes were offered
        alternative means of dispute resolution and the frequency with
        which the parties, including the agencies, accepted or declined
        to use such means; and
          (D) any recommendations of the Conference to improve the
        alternative dispute resolution procedures of the Federal
        banking agencies and the National Credit Union Administration
        Board.
      (4) Implementation of program
        At any time after completion of the evaluation under paragraph
      (3)(A), any Federal banking agency and the National Credit Union
      Administration Board may implement an alternative dispute
      resolution program throughout the agency, taking into account the
      results of that evaluation.
      (5) Coordination with existing agency ADR programs
        (A) Evaluation required
          If any Federal banking agency or the National Credit Union
        Administration maintains an alternative dispute resolution
        program as of September 23, 1994, under any other provision of
        law, the Administrative Conference of the United States shall
        include such program in the evaluation conducted under
        paragraph (3)(A).
        (B) Multiple ADR programs
          No provision of this section shall be construed as precluding
        any Federal banking agency or the National Credit Union
        Administration Board from establishing more than 1 alternative
        means of dispute resolution.
    (f) Definitions
      For purposes of this section, the following definitions shall
    apply:
      (1) Material supervisory determinations
        The term "material supervisory determinations" - 
          (A) includes determinations relating to - 
            (i) examination ratings;
            (ii) the adequacy of loan loss reserve provisions; and
            (iii) loan classifications on loans that are significant to
          an institution; and

          (B) does not include a determination by a Federal banking
        agency or the National Credit Union Administration Board to
        appoint a conservator or receiver for an insured depository
        institution or a liquidating agent for an insured credit union,
        as the case may be, or a decision to take action pursuant to
        section 1831o of this title or section 1790a of this title, as
        appropriate.
      (2) Independent appellate process
        The term "independent appellate process" means a review by an
      agency official who does not directly or indirectly report to the
      agency official who made the material supervisory determination
      under review.
      (3) Alternative means of dispute resolution
        The term "alternative means of dispute resolution" has the
      meaning given to such term in section 571 of title 5.
      (4) Issues in controversy
        The term "issues in controversy" means - 
          (A) any final agency decision involving any claim against an
        insured depository institution or insured credit union for
        which the agency has been appointed conservator or receiver or
        for which a liquidating agent has been appointed, as the case
        may be;
          (B) any final action taken by an agency in the agency's
        capacity as conservator or receiver for an insured depository
        institution or by the liquidating agent appointed for an
        insured credit union; and
          (C) any other issue for which the appropriate Federal banking
        agency or the National Credit Union Administration Board
        determines that alternative means of dispute resolution would
        be appropriate.
    (g) Effect on other authority
      Nothing in this section shall affect the authority of an
    appropriate Federal banking agency or the National Credit Union
    Administration Board to take enforcement or supervisory action.



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